Vehicle owners in the United States are required to register their vehicle with a Motor Vehicles Department or other state or federal agency. In the case of street-based motor vehicles, such as passenger cars, motorcycles, and most commercial vehicles, such registration is evidenced by attaching a state-issued identifier, typically in the form of a license plate, to the vehicle.
As states grapple with ever-increasing pressure to cap tax levels while at the same time providing the same or higher levels of service to residents, many are looking at alternative forms of fundraising. One source of funds which many states have begun to utilize is charging additional fees to provide residents with customized license plates. Customized license plates, also referred to as vanity plates, permit registrants to put their name, a company name, an expression, or other combination of letters, numbers, or other characters on the license plate rather than a state-generated combination of characters.